An “off-the-scale bad” -30.7 drop at the Philly Fed could indicate an upcoming loss of over 700,000 non-farm payroll jobs according to a technical analysis
Over at Zero Hedge, Tyler Durden has just posted a chart that is nothing short of scary.
As seen below it maps the Philly Fed verse the non-farm payrolls and implies that the Fed is a leading indicator of the non-farm payrolls.
Of course the Fed just took the worse dive off a cliff, posting -30.7 drop which Roubini calls “off-the-scale” bad, which is part of sharpest loss we have seen in recent history.
In fact it is a sharper loss than we saw leading up to the 2008 financial crisis even though the talking heads keep saying this is not 2008 — but then again they said Fukushima was no Chernobyl.
There is the actual chart and more info at the story but this is insane if this correlation remains true. Can you imagine what would happen if this happens? markets would crash all over the world. there would be no doubt about a "2nd recession" and even perhaps the start of the anticipated "greatest depression". Currently the DOW is down -414 points, European markets are down even further than that... all economic reports today were bad and this was one of them. Once again the estimates were way off...
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